Why endorse a cheque

The best answers are voted up and rise to the top. Stack Overflow for Teams — Collaborate and share knowledge with a private group. Create a free Team What is Teams? Learn more. What is the purpose of endorsing a check? Ask Question. Asked 11 years, 1 month ago. Active 9 years, 11 months ago. Viewed k times. Why do you need to sign a check on the back when you deposit it to your account? Improve this question. Vitalik Vitalik 5, 1 1 gold badge 22 22 silver badges 35 35 bronze badges. Add a comment.

Active Oldest Votes. I actually had to go to the bank today and so I decided to ask. Improve this answer. George Marian George Marian 6, 1 1 gold badge 27 27 silver badges 43 43 bronze badges. Technically the check is an order to pay on demand to a named individual.

The endorsement is an order by you the recipient to pay a third party on demand. In this case the bank You can endorse a check multiple times, but that's an archaic use of checks these days. I know that bank manager didn't go into too much detail and I'm sure I didn't remember it exactly how she stated it. Yuck: no, it isn't, not yet. If I want to transfer money between my checking accounts from two different Canadian banks, electronically it takes at least a day, while I can make it instantaneous if I write a cheque to myself and deposit it with my cellphone.

Cheques are also a good way to settle a payment today with the money to be collected in the future i. I go directly to the bank of the check's account I would theoretically not need to endorse the check but simply present it with proper identification of myself to be paid the funds?

Show 1 more comment. Imagine a crooked third party named Chuck. He finds the check and writes "Pay to the order of Chuck" on the back. Is this truly sufficient to allow him to deposit the check into his own account?? Yes, it's called "signing over" a check. Unfortunately, Bob loses the check. Chuck finds it. Because endorsing a check is how you authorize the finalization of the check transaction between you and the check sender, you should wait to endorse the check at the bank teller's counter.

This will help keep thieves from being able to cash the check because the proper person you hasn't endorsed it yet. If you are endorsing a check for an electronic deposit then the check will remain in your possession even after you've endorsed it. To keep the check secure, keep others from trying to cash it again, and remind you that you've already taken care of that check, write the word "VOID" in all caps across the front of the check as soon as the electronic deposit goes through.

The endorsement area of a check is found on the back of the check. At the bottom of the endorsement area, you'll also find the words "Do not write, stamp, or sign below this line. You should keep your signature and any other endorsement instructions you might have in that small endorsement area only. This is because the bank will need the rest of the space on the back of the check for their own records and purposes to finish processing the check correctly. The person receiving the check is the one that needs to endorse the check.

For instance, if the front of the check on the "Pay to the Order of" line says, "Jane Doe" then Jane Doe is the one who should be endorsing the check. In general, whoever's name is written on the "Pay to the Order of" line is the one who needs to endorse the check.

How to endorse a check is an easy thing to do. The first thing you should know is to wait until you are actually at the bank before you endorse the check. That way you'll be better at protecting yourself against check fraud. Next, flip the check over on its back and you'll find the section shown in the image below.

This is where you'll be endorsing your check. Step One: Flip the check over to the back of the check. The check cashing place you use will need this space for their own purposes, so it should be left blank. Endorse check for deposit only is a type of restrictive endorsement.

Restrictive endorsements are useful because they ensure the check will be used exactly how you want it to be used. When writing a restrictive endorsement it is important you be as clear as possible in your instructions.

You also need to keep your endorsement instructions and endorsement signature in the designated endorsement area and nowhere else. So you might have to write small, but legibly. Step Two: In the designated endorsement area write the words "For Deposit Only" in small but legible letters. Step Three: Below where you wrote "For Deposit Only" sign your signature to complete the endorsement. Just write the words "For Deposit Only to Account " with your account number written out.

Many banks now let you deposit checks using your phone. That means you don't have to take a trip to your bank just to take care of a check! Now all you have to do is have your bank's mobile app and you can deposit checks to your account from the comfort of your own home. Step One: When cashing a check on your phone, write the words "Mobile Deposit" along with your signature in the endorsement area on the back of the check. Step One: You'll be asked to follow some instructions that will include taking a picture of the front and back of your already endorsed check, and verifying the amount on the check.

Once the check funds drop into your account, write the word "VOID" in all caps across the front of the check. This will ensure that no one can try and deposit the check again. It also serves as a reminder to you that this check has already been taken care of. Read all about " How to Void a Check. If the check is written out to a business instead of a person, then someone who is authorized by that business needs to endorse the business check.

The bank that holds your business's bank account will know who is and isn't authorized to endorse checks to your business. Step One: In the endorsement area write the name of the business in the same way it's written on the "Pay to the Order of" line, sign your own name, and write your title with the company. Keep all of this information in the designated endorsement space. Ideally, when writing a check to a minor, you should write the name of the parent who will be depositing or cashing the check on the "Pay to the Order of" line, and then write the child's name with the letters FBO on the memo line.

FBO means "For the Benefit of. But not all checks for minors get written out this way. In that case, here is what you'll want to do. Step Two: In the endorsement area write the child's name with a hyphen and the word "minor" to indicate they are a child.

Step Three: Then, write your name with a hyphen that indicates your relationship with the child, like mother, father, parent, or guardian. This allows checks to be cashed or deposited by a specific party even though they are meant for another.

You might write an FBO check when writing a check for a child. For example, Jane Doe has a son named William Doe. William has a birthday and his grandma, Anne Doe, writes him a check. With ATMs and most mobile devices, you can often skip the teller line.

You may also be able to eliminate paper checks altogether by getting paid electronically. Ideally, you should wait to endorse a check until just before you deposit it.

That's the best way to prevent someone from fraudulently depositing a check made out to you. If you do endorse it early, be sure to add a restriction such as "for deposit only" under your signature. Sometimes you may receive a check that has no endorsement line or box on the back. That doesn't invalidate the check. Simply sign in the usual spot you would on the back and deposit it as you normally would.

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Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Banking Checking Accounts. Part of. Table of Contents Expand. Table of Contents. How to Endorse: The Basics. Who Signs To Endorse? Why Do You Need to Endorse? Mobile Deposit Endorsements. By Justin Pritchard. Justin Pritchard, CFP, is a fee-only advisor and an expert on personal finance.